Your Voice

Veteran Services: Finance Questions

Finances

You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.

Investing

I just read your article in the March 2012 American Legion Magazine regarding Roth TSP. I am very interested in this, but I am a little concerned since I have a traditional TSP account. I have been retired since 2007, and can no longer make contributions to it. Now I am worried that if I wait until I’m 70 1/2 years old to roll it over or withdraw my funds, I might suffer a huge tax “haircut” as you say. Do you have suggestions? Am I eligible for the TSP Roth? I am currently 60 years old, and I want to make sure I am doing the best thing!
-Keyser

I’m a retired postal worker and have money in a TSP. Can I roll that into a Roth IRA? I do have another Roth IRA investment somewhere else. Also, what would the tax implications be? Thank you for your time.
-James

If my grandson in the Navy overseas made a $5000 contribution to a Roth for 2012 in a mutual fund, can he also participate in the Roth TSP during 2012? I’m referencing the article in my current issue in American Legion Magazine in the “Rapid Fire” section about the new Roth TSP arriving in April. I received American Legion Magazine as a Marine during World War II.
-Anthony

Just finished reading Twelve for 12 by J.J. Montanaro and in the month of February he said that “a mere $100 a month growing at 8 percent will result in about $60,000 in 20 years.” Where do I find something/someone that is giving 8 percent? – Marion

I am interested in purchasing a home in the next 12 months. I have recently raised my credit score to a 656, and my median score is a 705. Should I wait for my median score to go over 740 before attempting to get pre-approved? Or is it the same money out of pocket and interest rate if I do it now through the VA loan program? – Francisco

I have a little less than $500,000 in a fixed-rate plan with a company and with a no surrender charge. It is not in an annuity. Should I, or can I, put my money in an annuity? If I can, will I pay federal taxes on the monthly allotment? And when I die, can the annuity be transferred to my beneficiary – primary, my wife, secondary, my daughter? – Al

I was wondering if anyone had advice about withdrawing funds from the Thrift Savings Plan (TSP). I have tried three different times to transfer and withdraw my TSP account but have been told first that there was a date issue when I was trying to transfer to another account, which was never fully explained to me. Then I had the wrong form to withdraw my funds. I just sent in the correct form, but I am now being told that I have submitted more than one request so it cannot be processed. –Juan

Inside my IRA I have a three-year $100,000 U.S. treasury bills that just matured. My banker recommends I purchase a variable annuity. The insurance company is Allianz, and it was sued by over 250,000 people from 2006-2007 according to my research. – John

We are octogenarians looking for a safe place to put 40 percent of our life savings, pending the possible need for senior-assisted living. We invested $450,000 with tax-free municipal bonds and are considering additional funds. Any thoughts? – Leo

My job has a targeted stock option grant of 250 options per quarter, vesting at 25 percent annually. What is the best way to take these grants –all options, 100 percent Restricted Shares or 50 percent Option/50 percent RSU)? – Gary

I am 75 years old and converted a SEP IRA I had since 1987 to a Roth IRA in Feb 2010. Do I have to wait 5 years before I can take tax free disbursements? If not, where do the instructions explain this situation? – Vernon

I would like information about the benefit of transferring my IRA from a bank certificate of deposit (CD) to a USAA Retirement Fund. The amount is approximately $100,000 and I am presently 77 years of age. – James

When I retired, I invested my pension and 401K dollars into a major financial corporation. I do have a financial advisor who works at this corporation. Do I need an external, unbiased financial advisor who is not part of this corporation? – Nick

Three years ago, due to economic conditions, my employer stopped contributing to their 403B plan. Can I roll this 403B into a ROTH without paying taxes or penalties? Is there a way to do this without the 20 percent/10 percent for early withdrawal? – Karen

We currently have an Individual Flexible Premium Deferred Annuity Contract with Indexed Interest Accounts. The current accumulation value minus the surrender value would be offset by the original premium bonus. Would a surrender be beneficial now? – Jim

I wish to reduce my estate, and I want to gift a ROTH or IRA to my children and great-grandchildren. Is there something about gifting to a skipped generation? And would it have to be a Roth, or could it be the traditional IRA? – George

A couple of years ago our financial advisor put $45,000 of our money in Fannie Mae and Freddie Mac preferred stock. Within a week, our stock was worth $1,000. If we never get our money back, do we have any recourse toward our ex-financial advisor? – Larry

I’m concerned about the U.S. dollar. Other than gold and silver, where is a good place to put my money, in an investment, in the event of the dollar collapse? Where can I put my investment so the government is not able to seize it? – Bernie

We recently sold our home, deposited the proceeds in a low-interest paying savings account and, for the time being, are renting. Are there other ways we can put our nest egg to work to achieve a better yield? Assisted-living places aren’t cheap. – Henry

What investment vehicles would you recommend when saving for a down payment on a house? With saving rates being so low, including CDs, where can you keep money being saved within a two-year time frame? – Teri

My husband and I have been discussing investing money for our children’s college. As a military family, would a 529 college fund be appropriate for us? Isn’t that a state-run fund? Would a Coverdell account be any better for us? – Jennifer